The audit examining the 2012 fiscal year ending in June showed the district holds almost $3.1 million in combined assets, including about $387,000 in total liabilities.

Rachel Smith of Rauner and Associates told the NRD directors Monday that only one minor problem was found. She said in an ideal situation, accounting practices are segregated, where one person does not perform all bookkeeping and payment duties.

She told the board the concern is diminished by the board's hands-on practices and awareness of the district's financial dealings.

Audits are required of entities using public funds and must follow state law and Government Auditing Standards.